The slain militants have been identified as Zubair Ahmad alias Musab, a resident of Nowpora, and Ishfaq Ahmad Bhat alias Amir, a resident of nearby Shopian district.
"Acting on specific information regarding the presence of armed militants in village Nowpora of Kulgam, security forces launched a cordon and search operation," a spokesman said.
He said militants opened fire on security personnel who retaliated killing two LeT militants in the gunbattle that lasted nearly three hours.
"The duo belonged to Ayatollah alias Ma'az sub-group of LeT and were active in South Kashmir," the spokesman said.